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PAN 2.0: How Technology Is Modernising Taxpayer Services

PAN 2.0 News: Taxpayers can update their addresses free of cost through Aadhaar-linked services. Updated physical cards will be issued upon request

The government has rolled out PAN 2.0- an innovative initiative for modernization and streamlining taxpayer services in India. This project, launched by Union Minister Ashwini Vaishnaw, aims to transform the way Permanent Account Number (PAN), Tax Deduction and Collection Account Number (TAN), and other services function. With dynamic QR codes, paperless processing, and unified experience on a single interface, PAN 2.0 promises to improve upon the taxpayer experience.

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But with whatever major change, there arise apprehensions about what happens with the old ones and also whether one has an upgrade or not. So let's have a closer look at what PAN 2.0 is, what it packs in, its benefits as well as what a taxpayer needs to be cautioned with.

The PAN 2.0 Project is an end-to-end e-governance project by the ITD aiming to streamline the process for taxpayer registration and to collate procedures, which so far were separately conducted to obtain PAN and TAN. In this manner, there will be no scope for searching on portals. Thus, it makes tax-related procedures faster and easier and completes digitalization.

According to the statement published in the government press release of 25 November 2024, PAN 2.0 focuses on four core goals. These include

1. Accessible: There are inbuilt systems allowing it to deliver faster and smoother

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2. Data Integrity: The "Single Source of Truth" principle prevents errors and inaccuracies arising from variance

3. Environmentally Friendly Process: This fully paperless operation thus fits within the objectives and objectives of the government regarding a cleaner government

4. Security: It is one of the most advanced tools to secure sensitive information of taxpayers

A core feature for PAN 2.0, therefore, is that PAN should be a ubiquitous digital identifier under several government systems whereby individuals and businesses would require much less effort in filing compliances.

Core Features of PAN 2.0

1. One Platform for PAN and TAN to Facilitate Services

All services of PAN and TAN are now integrated into a single central portal of PAN and TAN instead of distributing it on the e-filing portal, Protean eGov, and UTIISL. Process includes-

PAN application, correction and update

Aadhaar linking with PAN

Online PAN validation

2. Free Services to Taxpayers

PAN allotment, correction and update shall be free. The e-PAN shall be issued free of cost; physical PAN cards shall be issued at a minimal fee of Rs 50 for domestic delivery, and international delivery charges shall be applicable.

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3. Dynamic QR Codes

While PAN cards issued since 2017-18 already carry QR codes, the PAN 2.0 upgrade transforms these into dynamic QR codes that reflect the latest information from the PAN database. Existing PAN holders without QR codes can also apply for a new card under the new system if they so desire.

4. Paperless Processes

The digital-first approach of the project allows all activities from the application of PAN to the updating of details to be conducted online. This saves on the paperwork and contributes to the cause of environmental sustainability also.

5. Strong Data Security

PAN 2.0 brings in advanced security features including a PAN data vault for protecting sensitive personal and demographic information.

6. 24/7 Support Services

With this facility, taxpayers will also have dedicated support through a helpdesk and call centre, that enable the redressal of questions and grievances much faster than ever before.

FAQs on PAN 2.0

The income tax department came out with an FAQ dated November 26, 2024, again perhaps to dispel a section of fear.

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1. Do I need a new PAN card?

No. None of the PAN cards in current circulation will be cancelled. People can choose to have one new card that carries all updated features, for example, the dynamic QR code if a taxpayer is interested. This is strictly an option.

2. What about older PANs which do not have any QR code?

Old ones that do not carry a QR code are valid and very much alive. The old one can then be replaced under PAN 2.0 if a taxpayer wants an updated card.

3. Am I able to update my PAN details for free?

Yes. Individuals can avail of Aadhaar-based services of NSDL/UTIISL free of charge for name and address, date of birth change of the PAN holder.

4. What happens if there are duplicate PANs?

The system will automatically identify and deactivate duplicate PANs. However, the taxpayer who has two or more PANs has to report such facts with his Assessing officer to deactivate one of them.

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5. Will my PAN address be updated automatically?

Taxpayers can update their addresses free of cost through Aadhaar-linked services. Updated physical cards will be issued upon request.

Benefits of PAN 2.0 to Taxpayers

1. Efficient Services: It eliminates the need to visit different platforms as a single consolidated portal is used. Thus, it saves time, and there are fewer chances of confusion in procedures

2. Paperless Process: The process that is exploited due to paper-based paperwork is miles ahead of the paperless process

3. Single Master Data Management: A single uniform data set enables easy updating without error or inconsistency

4. Better Security: Advanced systems, for example, PAN data vault, offer sterner security for personal information

5. Flexibility: The taxpayer can easily update his information or correct errors without incurring a cost therefrom.

The PAN 2.0 Project is a landmark in modernising India's tax administration since the consolidation of services free of charge to updates with the improvement of data security shall provide the taxpayer confidence with general initiatives like Digital India.

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One of the most significant would be to make PAN a universal digital identifier. The incorporation will help taxpayers ease their compliance and eliminate most bureaucratic hurdles while interacting with financial institutions, government departments, or other parties.

The PAN cards of the taxpayers are valid, but it is not mandatory to change them. There is a facility to upgrade with cards with enhanced features. But PAN 2.0 sets the stage for the future that is smarter and more efficient, focused on technology-driven solutions.

PAN 2.0 is a forward-looking way of governance that gives convenience, security, and sustainability at the top of the list. It is free, updates faster, offers a single window to taxpayers and empowers them by opening a digital-first economy.

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